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TEDx[Canarias]-[Vicente Mora]-[03/01/10]

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Good evening, I see that you have made it to this moment At last you are going to find out the truth for which you are here. I don't know if it was on the invitation, but what I do is to raise money, to raise money for talent, so I don't know if it's on the invitation, but I need 5 to 50 euros from each of you. I mean, to set an example,we can start with this group over here you can really start getting the money because I need it in order to explain how this money is raised for talent and while you're getting it I'll talk I bit. Let's see, for you to get the idea, and I think it will be useful and I think it will be very illustrative how I met, in this case, the people from Org�nica. About a couple of years ago, we had a financing workshop where they, as do most talented people, went to be triggered, that is, to attempt to capture those who they thought had money There was a multimillionaire American venture capital fund and they immediately went running to see them. Obviously, we were skipped and, in this particular case, I was skipped,I was dressed just like now. You'll see this later on and I'll explain it,this is the suit for the perfect financier, you'll understand it later, OK? Now when you have it all, because I see very little money, much more is needed, be a little more spirited, consider that you'll make history for being the first ones who bet on TEDx for talent, so, show that you really empathize with this thing called TEDx and that you didn't come only for the closing drink. Good. Then, they went straight to talk to the gentleman of the venture capital and this gentleman sent me a message,with four ideas. The message was very simple, it was an SMS, I thank the new technologies the fact that we met, where he said: "They are pure talent", "they don't have a dime", "we can take even their livers" and, he said: "either you buy them or I do". Well, this message gave me the clues and opened my eyes, I was an innocent man until then and I stopped being it. OK, the first: "they are pure talent", implied that this man had something of a good nose, I later saw it and, yes, I more or less agreed "They don't have a dime", it's the usual among people of talent, they tend to not have any money, that's why they approach people who do. "We can take even their livers", I found this a bit dishonest but, well, it's the general idea, as I'll later explain, about how talent and money work, don't be scared, not at all, it's like that, and you have to get used to it because otherwise it will be very hard for you. And it ended with "either you buy them or I do" that gave me the clue that I had to distance myself from the classic models' way of financing. How can it be that someone who detects talent, who can get money, and besides they don't have any, tells me "either you buy them or I do" ? Obviously, there was a disparity that made me know them. Well, there was another small detail in that my secretary, who writes sms dreadfully, wrote something like: "Take a look at the young guy, the tall one" and what could be "he's pretty good" or "he looks good". And, well, since we weren't totally convinced, we also looked this way, it could be both things, so that was something else that made us approach them. OK, finally, and thanks to that venture capital fund, for which I'm extremely grateful, we got to contact them and we are working with these people, a lot. Talent and money, for you to get a grasp of it. How's that fund-raising going? well, bring here what has been collected. Well, it's more difficult this way, well, talent and money, for you to understand it money never comes from the air, be sure about that Well, he has collected 55 euros, which is not bad for a starter, thank you very much. Let's see how I give it back at the end of the day. So, talent and money don't get along at all. Let's be clear about that. it's very difficult to raise money for talent and, usually, they will question you because they'll think, in general, that you're not to be trusted That's why it's vital to dress a certain way, that�s why it's vital to have a certain discourse. And in general the problem of talent and money originates because talent and money are, by definition, irreconcilable. We'll see it. What is money? Well, money is a payment value. It is used, generally, to pay, whether it is goods, services or liabilities. And, still, what you have there is money, it's what you were unable to bring, take a look, 500, 200, I guess that's why you can't recognize these bills, it's normal; it's not what you usually have at home, but, anyway, I've noticed there has been a little attempt and that's a start. And, however, what is talent? Talent is the ability to create; to create, in this case, forms of activities that have not been undertaken and before others, and, in other cases, it's creating these same activities but giving them a different point of view. That's talent. As you can see, they are two completely different things. What is talent? I'm going to explain it with a case study. I�my story�, my first work is a show that I think you all have seen, it's called Sesame Street, you were little babies, Remember? Epy y Blas If someone is capable of taking these socks and, this alien-like guy dressed this way with two socks in his hands, and do this face them and say: "hello Ernie", "hello Bert" and, with this, convincing humanity that you can teach concepts of solidarity, concepts of communication between people, teach to count, to read,and creating with this a Transmedia product. Jim Henson created this long before Transmedia was understood as a concept, we will be in the presence of talent. The problem is that it is extremely difficult to persuade some gentlemen �and it was very hard for Jim Henson-, of the possibility of creating a business with two socks, even one that we now all know and is so easy, Bert and Ernie, the dinosaurs, all those puppets, it was hard even for him. So talent and money were not very close and it was understandable in this case. I'm going to put it by saying which the essential words are for money and which for talent ? Let's see, talent, I'm sorry, money, what is it? Money, as I've been taught by these gentlemen, is this It's something tangible that can be touched, and talent is something completely intangible, you cannot touch it, it�s very hard, It's an accounting unit, we all know these are 5 euros, anywhere on the planet people understand 5 euros, Talent, on the other hand, is not an accounting unit, it's a value, and as such, can be quantified in many ways, it may be worth 5 euros, 50 or 500. Money is a keeper of value, it has a fixed unit that is used anywhere, but talent is a modifier of value. Money is widespread, in whose pocket it is a completely different story, it is so widespread that he had it and now I have it. And, well, it's easy, but in the case of talent, it's very scarce, they didn't get a dime from me, and I managed to get all this money from them. Besides, money is very recognizable, while talent is very rare, hard to find. So, at the moment of truth what we get is that, if we take a look at the features, and in order to analyze any business it's vital to compare these features, considering any investment, this marriage is very unlikely, virtually impossible. Then there is a test, before getting to analyze how money is raised, a key, which is the following: "Clothes do not make the man". What clothing does is keep away the demons, specially when we have to face an audience that specializes in talent, for me, the ideal financier suit is something as alien-like as that, or as the one I'm wearing. Here is my financial director, here are bank people and even administration people, who hallucinated when I went like this to the first presentation. It's on purpose, it's me, I've learned this and I've seen many investors dress like this, for instance in Los Angeles. Why? When we are addressing talent, where there are so many features that differentiate money and talent, we have to play with a series of basic elements. And, if someone doesn't accept you that way and wants to see a gentleman wearing a suit and tie, an Armani suit, with a business card reading "Bank", or Madoff well, obviously, we're facing a problem. Why do we do this presentation or, why do we dress like this when we specialise in talent? We dress like this because we need that the person in front of us, whose money we're looking for, keeps an open mind. I've introduced myself at some banks in Canarias, and I work with one, the only one that wasn't scared. The rest looked at me as if to say "What is this?" That's very important, because it's the way to avoid wasting time, you will have the same experience when raising money Then, there is a second thing that's indispensable, which is that people need to have a sense of humor. I find he who has no sense of humor extremely suspicious. and I could make some points, but I was prohibited from doing so, and since I'm very respectful, I'm doing it, in order not to cause controversy But it's essential that you have that sense of humor. Then there's another thing that tells apart the financier that seeks money for talent from a financier of another kind, which is "account" and "recount". When we stand before talent and the money that goes to it, if the first things asked are "Show me the accounts", "How much does it cost?", "What's your business plan?", I'm not interested at all, and neither is the gentleman that's going to put that money. In general, when you introduce yourself to someone who has money and is really interested in investing in talent, this person says: "Tell me. Tell me what the story is about. Tell me what the business is about, tell me what's all this that you have at hand". He never says: "How much does it cost?". When they do say: "How much does it cost?�, there is a problem you're going to waste an enormous amount of time. Also, it's vital that you sense passion first, in the person who introduced you and second, that you sense passion in the person listening to you. If you don't sense passion the problem is yours, and you're going to achieve nothing at all. And then what people must fully understand, is the difference between money and talent. If someone hands you a product of talent for you to finance, it's because he doesn't have money. Don't demand from him things that are associated with money. I mean, don't demand a too elaborate business plan, a patent registered in some particular way, things that are along the lines of conventional money, because he most likely won't give it to you. A different thing is that you give him advice, help him ... And then there's one thing that always gives me a clue, which is gentlemen that give me a business card or ask me for one. In general, and I can give you statistics, a person who gives me a card, in 90% of the cases, won't invest. Usually, those who don't hand me a card, come with a "Let's see what this is about�", kind of attitude. They come with interest, they come to listen. He who brings a business card comes to spy. Unfortunately, it's like that, I don't know why but it works, and it has always worked for me, moreover, I refuse to give a business card, since we have social networks and mobile text messages, why spend money on cards? It's ridiculous. Besides I move around places, different places, with different languages, so it's a bit absurd. OK, so what we have at the moment of truth, is a problem of how to handle this whole money and talent issue. And there's another problem on top, that all people who have talent and don't know money, go indiscriminately running anywhere they smell money. They usually go for these four bases: Easy Money: grant money, subsidies, help money. Also, they usually go for the Banking Sector. They also tend to go to Venture Capitals and Private Investments. These are the four bases between which people searching for money for their talent usually move around. OK, to carry on with what Diego was saying, I'm going to explain how, according to me, this money for talent thing works. In this case, with Little Red Riding Hood again. As you can see, we've chosen a Red Riding Hood with a bit more "talent", we've made her a bit older, we've placed more talent in certain places. What happened? You find it a little sexist? Well, that's easily fixed, we cover her up well to avoid ideology issues, of how one thinks of women, or whatever. So, you, the girls at the back, don't feel insulted, that here anything can be adapted. OK, let's imagine Red Riding Hood. Red Riding Hood is, as Diego said, a story that everyone recognizes and a very easy one. well, she goes to easy money, let's say in Canarias, but it could easily be Lituania. In this case, there are several requirements she needs to meet, and they tell her: "OK, we'll give you a grant but both main characters must be from Canarias". That's no problem for her, she's been here for many years and has residence, but, what about the wolf? There are no wolfs in Canarias. How can we make the wolf Canarian? "Well, if there's no Canarian wolf, there's no main character, so we don't fund you". So, they come up with a way to solve this and decide that there's a German dog that looks a bit � they marry them, by the gay partnership law, and problem solved. We now have two residents. But, at the moment of truth, when they are about to fill in the forms, they are told: "But girl, your production company must have a record, otherwise it will be harder for you". So she has to enter a partnership with someone, and this person demands percentages that make production impossible. Now, she goes to the Banking Sector. She speaks to a banker, who knows the story of Red Riding Hood and tells her: "I'll give you money, I'll give you credit to finance your production company. but, you know how things are, you need a guarantee. How about you convince your grandma to sign?". Well, but, the only thing my grandma has is her house�". "Alright, how about you let the wolf eat her, so your mother inherits and then you can convince her". "My mother would never do that to her own mother". "Well, what if you ask the woodcutter to shoot your mother, then get home ownership and so get the guarantee, but of course: we don't know if the debt commission will accept your grandma's house as counter guarantee". So she heads to Venture Capital, and the guy there tells her: "Great. You have a product, "Great. You have a product, that absolutely everyone on the planet knows, and is fantastic. Price Waterhouse has appraised your brand?", and she's like "what's that?", "and how do I measure my brand's appraisal?". "Ah, your brand is not registered? Well, look, being that your brand is not registered and that this is a strange production, I mean..., a story about a girl seducing a wolf in the woods, maybe is not politically correct. How about you help us find a wolf, we make him the hero and we throw in three little pigs of the real estate sector, and make a musical. We make a musical with the wolf and the three little pigs, you are the mediator, and we give you a percentage". so,also, she run out ... And she finally arrives to the private investor. He doesn't ask for the wolf to be Canarian, for her house, I mean, he doesn't ask for her house to be a guarantee, or for her brand either. But he's enthusiastic about the story of Red Riding Hood, because he knows, he senses that it can mean money, and asks her for all kinds of information, the Transmedia that one may imagine and he gets the idea, he sits with her and tells her: "OK, look, I'll be the producer, and I'll give you the money for everything. You get 10 percent and I get 90". She thinks about it, and then says: "I don't know, give me a couple months". In the end she decides to go back, because 10 percent is better than nothing at all. And on her way there, she sees a giant ad that says: "Red Hood: the condom for you to not hear stories", and the signature of the investor's production company. So, the poor girl is desperate, sick and tired, and in the end decides that she can't enter this scheme of things, that she's very talented but it's very hard to raise money. Then, at the moment of truth, if we go over the characteristics of talent, what we need is something that's compatible. Then, there are certain products, in certain parts of the world, which are, in features, absolutely the same or very similar, that are intangibles, that are values, �and in this case an accountable unit- which modify value, which are scarce and rare. That's called taxation. All investors understand taxation easily, they understand it in a more direct manner, and think that, ultimately, it's not their money but money that they would have to pay someone else, but it is easier, it's compatible and, thus, much easier to negotiate or, at least, that's my base. I've managed to get money to invest in the Canary Islands, thanks to the fact that Canarias has a wonderful tax system that, I'm sorry to tell you that, many Canarians don't know of. It probably is one of the most extraordinary economic and fiscal system that I know. So, in this case, what we have is a series of numbers and letters, into which we should probably go in depth, but, what we have in the end are things called like RIC, ZEC, 18-38, 6000 In the end, we have a system that allows the man who has money to give it much more easily, because it's more compatible to understand. In Canarias, today, there are 6000 million euros that have to be spent, or else, they have to be paid to the treasury, and that, according to the economic and fiscal regime, can be invested in talent. In all the talent that you have. In whichever. And it would be very interesting if a series of instruments were created that would allow us to invest, but, what happens? That even that, money, money for taxes, and this is how some big countries have developed, with their ways of financing talent Puerto Rico, South Africa, Luxembourg, Belgium, etc., there are certain countries with remarkable tax systems, there's a second part, that is that, contrary to what can happen with a subsidy system, capital risk or other kinds of systems, the investor wants security, he wants his money back, nobody is giving you anything. And, in that sense, he seeks total security, the security of the condom. And, in this case, he's going to ask you for guarantees, insurances, presales. A model that we have that's almost American, very common, for instance, in the movie industry, in the United States It's very common, productions have counter guarantees from the start and, if at least 80% of the production isn't covered, it's not done. It's like that. Then there's a series of insurances that cover your production, and a system of presales that helps you achieve this. Money works like that. OK, then, what is it that the investor always looks for? and what we must not think when we have talent is that they just have to give us the money. What I have done, by keeping your money, is a particular form of the talent. Talents think they just have to be given money, many talents think that. so they turn to certain systems, where they think they must be given money because they have talent. I completely disagree with that. What you have to give, when you have talent, is profitability. You must look for ways of giving rentability giving all the money in the world. No matter that we then use those instruments, those means that are available in the market. The venture capital, investment group or financing, any alternative, it doesn't matter, because it can all be conveyed. But you have to understand that it's essential that talent makes money, and that thinking that they just have to give you money because you have talent, only leads to talent not being capable of producing anything To end this, there are two concepts, that you must fully understand. "Any talent is invisible for he who has none". so, don't bother trying to convince anyone. And that, in case you succeed, you'll find that, in spite of all the criticism we've received, "first, they'll deny what you're doing", "second, they'll minimize it when they realize it's working", "and, third, they'll say they already knew it for a long time". This was written by a geographer that lived in the Canary Islands 200 years ago. I think it still applies today. Muchas gracias

Video Details

Duration: 23 minutes and 29 seconds
Country: Spain
Language: Spanish (Spain)
Producer: Learn & Show - Innovation Institute and AVLE
Views: 125
Posted by: yaelho on Apr 1, 2010

Vicente Mora gives us some clues on "How to raise money for talent".

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